Penta Eyes Sick German Drug Store Chain Schlecker

Penta Investments is known to have made a bid for German insolvent chain of drug stores, Schlecker, after almost a month since its last 40 percent stake purchase in Polish retail company EM&F. The bid for Schlecker is non-binding at this point, with the objective being that the Schlecker family will only own a marginal stake after the deal is through. The insolvency is being administered by Arndt Geiwitz, who will be shortlisting the bidders and coming up with a decision by the end of next month. There are currently no German companies on the bidders’ list. 3,000 Schlecker stores need to be renovated at a cost of EUR 90 mln, which is likely to be the minimum acceptable bid. The Prague-based PE firm specifically wants the family interest to be limited to a “symbolic” one.